Pot Stocks Continue to Get Murdered
Pot Stock Investors Frustrated as Stocks Continue to Fall
Well, it was another shit show today for cannabis stocks.
The downward spiral began a couple of months ago, and has not let up. Although we are now seeing some indication that most of the bleeding is starting to slow down a bit. Still, this is of little comfort to those who showed up late to the cannabis game.
MariMed (OTCBB: MRMD) was today’s biggest loser, although a 25% drop in share price opened up an opportunity for eager buyers. By the close of the trading day, the stock started to trend higher, closing the day with a 13% loss. Volume was quite high, too, at 2.2 million. Average volume on MariMed is about 725k.
Fortunately, we’re in below $1.00, so we’re not sweating it. Long-term, MariMed is solid, and quite frankly, we likely get acquired by a much larger player within the next year or two.
Other cannabis stocks that took it on the chin today include …
Aphria, Inc. (NYSE: APHA) – Down 9.8%, continuing its slide after a gaggle of scumbag short enthusiasts attacked the company in a scathing report.
Although the report was quite convincing, those who get rich by fucking over shareholders are not to be trusted.
Charlotte’s Web Holdings (OTCBB: CWBHF) – Down 10.6%. The Senate approval of hemp legalization language in the farm bill didn’t entice many newcomers. I suspect early investors were selling on the news. CWBHF is still a quality outfit though. Anything below $10.00 is a bargain if you’re looking for a long-term investment in the space.
Planet 13 Holdings (OTCBB: PLNHF) – Down 10.5%. These guys have an awesome dispensary in Vegas, and the company will be a serious player as it grows and expands. But for now, the stock has shed more than 60 percent of its value since the end of November. It should be noted that at a high of $2.57, it was insanely overvalued. Even at $0.93, it’s on the steep side. I wouldn’t be opposed to picking some up, but I wouldn’t pay more than $0.90.
While these three stocks had a shitty day, one of my favorite cannabis plays, Aleafia Health (OTCBB: ALEAF), ended the day with an 11.3% gain. This is still far from its $3.62 high form just a few months ago, but in terms of solid Canadian cannabis players, Aleafia remains an undiscovered giant, and worth at least $2.00 a share.
How tomorrow will unfold is still anyone’s guess.
The outlook for the North American cannabis industry remains strong, but the market doesn’t give a shit. And it will like continue to torment cannabis investors for the remainder of the year. That being said, we continue to buy on dips and strengthen our positions in anticipation of 2019, which will be a banner fucking year for pot stocks.
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